Question: Consider a 3 0 - year 6 % callable, corporate bond issued in October of 2 0 1 4 . The bond has 1 0

Consider a 30-year 6% callable, corporate bond issued in October of 2014. The bond has 10 years of call protection - it becomes callable in October of 2024 at a premium of 5%. Suppose you bought the bond in October 2019 when it was trading to yield 5%. Please, find the yield to first call at the time of purchase. Express your answer as a percentage with 3 digits after the decimal point but omit the % sign. Hint: You did not buy the bond at issue, so you need to price it first.
The answer is 3.779
How do you get there? How do you find the initial price of the bond first?

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